Suppose a Lawyer Leaves His $50, 000-A-Year Job and Starts

question 62

Multiple Choice

Suppose a lawyer leaves his $50, 000-a-year job and starts his own firm breeding pit bulls.In the first year, his accounting profit is $70, 000.The lawyer finances his new business with $100, 000 from his savings account, which had earned 10 percent interest.His economic profit is

• A)$10, 000
• B)$60, 000
• C)$70, 000
• D)-$80, 000
• E)-$90, 000

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Definitions:

Tariffs

Taxes on imported or exported goods designed to restrict trade, raise government revenue, or protect domestic industries.

Japanese Rice Market

The sector of the economy in Japan involved in the production, distribution, and sale of rice.

U.S. Rice Millers' Association

An association that represents the interests of the rice milling industry in the United States, aiming to promote the growth and sustainability of the rice milling sector.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time period.